Bad Debts Expense is:
A) not included in Cost of Goods Sold.
B) considered an expense matched with revenues.
C) listed on the income statement.
D) All of the above.

Question

Quizplus · Accepted Answer

Bad Debts Expense is not included in the Cost of Goods Sold as it is related to credit sales, not the cost of producing goods. It is considered an expense that is matched with revenues, following the matching principle of accounting, and it is indeed listed on the income statement as part of the expenses that reduce net income.

Bad Debts Expense Is